China's Ministry of State Security (MSS) issued a stark warning on Wednesday, alleging that a foreign company is exploiting cryptocurrency token incentives to illegally collect iris biometric data globally. While not explicitly naming Worldcoin (now rebranded as World), the ministry described a scheme mirroring its operations – offering tokens in exchange for iris scans and transferring the sensitive data overseas.
The MSS stated this practice poses dual threats to personal privacy and national security, citing cases where foreign intelligence agencies used harvested biometric data for espionage activities within China. Officials highlighted that iris patterns are highly stable and irreplicable, making them particularly valuable for high-security authentication yet vulnerable to malicious exploitation.
This aligns with Worldcoin's model, co-founded by OpenAI CEO Sam Altman, which provides crypto tokens for iris verification to establish digital identities. The project has previously faced regulatory scrutiny in Germany, France, and Kenya over data consent and storage concerns. According to CoinDesk data, Worldcoin's WLD token dropped 4% to $0.93 following the announcement.
The ministry urged citizens to scrutinize biometric data collection practices, especially for facial, fingerprint, or iris recognition services, and demand transparency on data usage. Though no new regulations were proposed, the advisory reflects China's escalating unease over cross-border data transfers linked to digital identity technologies.